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Important information for new customers investing in Prudential Onshore and Offshore Bonds

From 11 September 2017, access to traditional with-profits through the onshore and offshore bond products open to new business - Prudential Investment Plan, Prudential International Investment Bond and International Prudence Bond - will no longer be available for new customers. This affects the following funds:

Prudential Investment Plan
Prudential With-Profits Optimum Return (OR) Fund
Prudential With-Profits Optimum Bonus (OB) Fund

Prudential International Investment Bond/International Prudence Bond
PAC US Dollar With-Profits Fund
PAC Euro With-Profits Fund
PAC Sterling With-Profits Fund

The Prudential With-Profits Fund is still available as a fund option for new business on Trustee Investment Plan and Flexible Retirement Plan.

It is important to note we are not closing the Prudential With-Profits Fund. The underlying fund and ongoing management of the fund will remain the same and access will continue to be available to the With-Profits Fund through the PruFund range of funds.

The demand for the traditional style of accessing the Prudential With-Profits Fund as an investment choice has reduced in recent years. As a result, Prudential is focusing on PruFund as the new business proposition and no longer allowing access to traditional with-profits as an investment option for onshore and offshore bonds for new customers.

The popularity of our PruFund proposition continues to grow, with more customers choosing the option of a smoothed return via the PruFund range of funds. For example, 95% of all new money invested in Prudential With-Profits via our onshore bonds is through the PruFund range of funds, that's £19 out of every £20 received.

The value of your clients' investments are not guaranteed and can go down as well as up and they may not get back the full amount they put in.

The questions and answers below will help to address any questions you may have:

Q1 When are we doing this?

  • Illustrations for investment in the funds listed above through Prudential Investment Plan, Prudential International Investment Bond and International Prudence Bond will remain available up to and including 9 September.
  • We will accept applications and monies for investment in the funds listed above through Prudential Investment Plan, Prudential International Investment Bond and International Prudence Bond up to and including 11 September.

Q2 What does this mean for existing Prudential Investment Plan, Prudential International Investment Bond and International Prudence Bond customers?

  • Existing Prudential Investment Plan, Prudential International Investment Bond and International Prudence Bond policyholders will still be able to top-up into the funds listed above. From the 10 September you will no longer be able to obtain a top up illustration or submit top up business through PruAdviser in to the funds listed above through Prudential Investment Plan, Prudential International Investment Bond and International Prudence Bond. To obtain a top up illustration please contact your dedicated adviser support team on 0808 234 0808. For the submission of top up business you will need to complete the top up application form which can be obtained from PruAdviser.
  • Existing Prudential Investment Plan, Prudential International Investment Bond and International Prudence Bond policyholders will still be able to switch into the funds listed above.
  • All existing with-profits policyholders will continue to benefit from being invested in the Prudential With-Profits Fund. The Prudential Assurance Company Limited With-Profits Fund is the largest and one of the financially strongest with-profits funds in the UK. The size and strength of our Fund allows us to invest in a very wide range of assets and individual companies.

The total level of assets backing the with-profits business in the Fund was £91.0bn at 31 December 2016.

Q3 What does this mean for new Prudential Investment Prudential International Investment Bond and International Prudence Bond customers?

New customers have access to the PruFund range of funds. The PruFund funds invest in Prudential's With-Profits Fund.

Q4 What does this mean for other products that offer the traditional-style Prudential With-Profits Fund as an investment option?

The Prudential With-Profits Fund is still be available as a fund option for new business on Trustee Investment Plan and Flexible Retirement Plan.

Q5 Does this signal the future closure of Prudential's With-Profits Fund?

No. The Prudential Assurance Company Limited With-Profits Fund is the largest and one of the financially strongest with-profits funds in the UK. The size and strength of our Fund allows us to invest in a very wide range of assets and individual companies.

The Prudential With-Profits Fund is still available as a fund option for new business on Trustee Investment Plan and Flexible Retirement Plan.

The popular PruFund range of funds continue to invest in the Prudential With-Profits Fund.

Q6 What does this mean for PruFund?

There is no impact on our PruFund range of funds or how customers can access PruFund.

Since the launch of the PruFund range of funds on 25 November 2004, the PruFund funds under management have grown to £30bn (as at 30 June 2017).

For UK Adviser Use Only - Not Approved For Use With Clients